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FSL Trust says to expect significant net loss for FY2016, appoints new CEO
FIRST Ship Lease (FSL) Trust announced on Monday that it expects to report a "significant net loss" for FY2016, which is mainly attributable to impairment provisions on vessels and a loss on the disposal of two vessels.
The trust, which owns ships and provides leasing services on a long-term bareboat charter basis, said in an announcement that it "deems it appropriate to issue a profit warning" with respect to its financial results for the year ended Dec 31, 2016.
FSL Trust added: "Despite the accounting loss, FSL Trust continues to generate positive cash flow and income available for distribution."
Its final results will be released on Feb 23.
On Monday, FSL Trust also announced that Alan Hatton has ceased to be a director and the chief executive officer (CEO) with effect from Feb 2, 2017. The trust cited "certain matters involving potential misconduct and breach of duties", which include the disclosure of confidential information to third parties which was not disclosed to or authorised by the board, and the setting up and providing services for remuneration through Lionwharf (in which Mr Hatton was the majority shareholder), in breach of express and implied duties, without disclosure to or authorisation by the board.
Roger Woods, the deputy CEO, has been promoted as the acting CEO with effect from the same date.
The trust on Monday requested for the lift of its trading halt.